Post by Sapphire Capital on Jul 15, 2008 4:24:14 GMT 4
New Algorithmic Offering Enables Access to Both Dark Liquidity and Public Markets
By Cristina McEachern
June 02, 2008
Morgan Stanley Electronic Trading has introduced a new tool enabling clients to access both dark pool liquidity and public markets simultaneously. NightOwl is available through direct market access or via MSET's algorithmic trading platform.
"It used to be clients either wanted to be in the public, lit marketplace or they wanted to be in dark pools," says Andrew Silverman, managing director and head of distribution at Morgan Stanley Electronic Trading. "Dark pools definitely have certain advantages, but now clients see that if they're in the lit market and willing to show their hand, why would they want to disclude any dark pool volume?"
Silverman emphasizes that Morgan Stanley's dark algos stay away from dark pools that include any indications of interest. "The buy side picks their trading partners very wisely and its up to us to pick our execution venues wisely," says Silverman. "So we select our execution venues based on both quantitative and qualitative measures."
Clients can access NightOwl through vendor order management systems, as well as Morgan Stanley's Passport front end. "NightOwl has a variety of different settings, from passive to moderate to aggressive order types that work in different modes," says Silverman. "Our aim is to bring together selective liquidity in both the lit and the dark markets for our customers' benefit."
By Cristina McEachern
June 02, 2008
Morgan Stanley Electronic Trading has introduced a new tool enabling clients to access both dark pool liquidity and public markets simultaneously. NightOwl is available through direct market access or via MSET's algorithmic trading platform.
"It used to be clients either wanted to be in the public, lit marketplace or they wanted to be in dark pools," says Andrew Silverman, managing director and head of distribution at Morgan Stanley Electronic Trading. "Dark pools definitely have certain advantages, but now clients see that if they're in the lit market and willing to show their hand, why would they want to disclude any dark pool volume?"
Silverman emphasizes that Morgan Stanley's dark algos stay away from dark pools that include any indications of interest. "The buy side picks their trading partners very wisely and its up to us to pick our execution venues wisely," says Silverman. "So we select our execution venues based on both quantitative and qualitative measures."
Clients can access NightOwl through vendor order management systems, as well as Morgan Stanley's Passport front end. "NightOwl has a variety of different settings, from passive to moderate to aggressive order types that work in different modes," says Silverman. "Our aim is to bring together selective liquidity in both the lit and the dark markets for our customers' benefit."